Recently, several private telecom companies in India have increased their mobile recharge plan prices by 20-25%. While the reasons behind this hike will be discussed, it is important to understand its impact on India's state-owned telecom company, BSNL (Bharat Sanchar Nigam Limited).
According to a report by Dainik Bhaskar, BSNL's SIM card sales have tripled in July. Additionally, BSNL has seen a 2.5 times increase in the number of customers porting their numbers from other companies. In the Bihar-Jharkhand circle, particularly in Dhanbad, BSNL is reportedly selling 500 SIM cards daily, compared to 150 per day the previous month. Moreover, BSNL is gaining around 2,500 new customers every six days.
A report from Rajasthan Patrika claims that nearly 161,000 people in Rajasthan have switched to BSNL within a month. Meanwhile, other private telecom companies have faced backlash due to their price hikes.
BSNL's Plans:
₹108 Plan: 28 days validity, unlimited calling, and 8GB data for new users.
₹197 Plan: 70 days validity, 2GB 4G data, unlimited calling, and 100 SMS per day for the first 18 days.
₹199 Plan: 70 days validity, unlimited calling, 2GB data, and additional services like BSNL Tunes.
While BSNL offers these competitive plans, there is a significant drawback: its slow service and technology compared to private telecom companies like Jio, which provide 5G services nationwide.
Reason for Price Hikes:
The primary reason for the price hikes by private companies is to increase their Average Revenue Per User (ARPU). By raising the prices of their tariff plans, these companies aim to elevate their ARPU. The goal is to reach ₹300 ARPU per user. Previously, the target was ₹200, which was achieved last year, leading to the current price hike. Prices may continue to rise once the ₹300 target is met.
As consumers move back to BSNL due to the increased prices from private companies, BSNL has a golden opportunity to win back users' trust by offering superior services.
What are your thoughts on this issue? Please share your opinions in the comments.
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